Mattel 2007 Annual Report Download - page 25

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calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet website that contains reports, proxy and
other information regarding issuers that file electronically with the SEC at http://www.sec.gov.
Mattel’s Internet website address is http://www.mattel.com. Mattel makes available on its Internet website,
free of charge, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K,
Proxy Statements and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the
Exchange Act as soon as reasonably practicable after such materials are electronically filed with, or furnished to,
the SEC.
Item 1A. Risk Factors.
Factors That May Affect Future Results
(Cautionary Statement Under the Private Securities Litigation Reform Act of 1995)
Certain written and oral statements made or incorporated by reference from time to time by Mattel or its
representatives in this Annual Report on Form 10-K, other filings or reports filed with the SEC, press releases,
conferences, or otherwise, are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995 and may include, but are not limited to, statements about: sales and inventory
levels; brand and customer management programs; increased competition; initiatives to promote revenue growth;
globalization initiatives; restructuring and financial realignment plans; special charges and other non-recurring
charges; initiatives aimed at anticipated cost savings; new entertainment properties; initiatives to invigorate the
Barbie®brand, enhance innovation, improve the execution of the core business, leverage scale, extend brands,
catch new trends, create new brands, and enter new categories, develop people, improve productivity, simplify
processes and maintain customer service levels; quality control and safety testing; impact of product recalls;
reserves for product recalls and other incremental recall-related costs; supply chain operations; import and export
licenses; integration of acquired companies and assets; operating efficiencies; capital and investment framework
(including statements about free cash flow, seasonal working capital, debt-to-total capital ratios, capital
expenditures, strategic acquisitions, dividends and share repurchases); tax provisions; cost pressures and
increases; advertising and promotion spending; profitability; price increases, retail store openings and the impact
of recent organizational changes. Mattel is including this Cautionary Statement to make applicable and take
advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any such
forward-looking statements. Forward-looking statements include any statement that may predict, forecast,
indicate, or imply future results, performance, or achievements. Forward-looking statements can be identified by
the use of terminology such as “believe,” “anticipate,” “expect,” “estimate,” “may,” “will,” “should,” “project,”
“continue,” “plans,” “aims,” “intends,” “likely,” or other similar words or phrases. Except for historical matters,
the matters discussed in this Annual Report on Form 10-K and other statements or filings made by Mattel from
time-to-time may be forward-looking statements. Management cautions you that forward-looking statements
involve risks and uncertainties that may cause actual results to differ materially from the forward-looking
statements. In addition to the important factors detailed herein and from time-to-time in other reports filed by
Mattel with the SEC, including Forms 8-K, 10-Q and 10-K, the following important factors could cause actual
results to differ materially from past results or those suggested by any forward-looking statements.
If Mattel does not successfully satisfy consumer preferences, enhance existing products, develop and
introduce new products and achieve consumer acceptance of those products, Mattel’s results of operations
may be adversely affected.
Mattel’s business and operating results depend largely upon the appeal of its toy products. Consumer
preferences, particularly among end users of Mattel’s products–children–are continuously changing. Significant,
sudden shifts in demand are caused by “hit” toys and trends, which are often unpredictable. Mattel offers a
diverse range of products for children of all ages and families that includes, among others, toys for infants and
preschoolers, girls’ toys, boys’ toys, youth electronics, hand-held and other games, puzzles, educational toys,
media-driven products and fashion-related toys. Mattel competes domestically and internationally with a wide
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